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Describe effects of a contractionary fiscal policy where the government reduces spending. Be sure to discuss what happens to output, interest rates, consumption, investment and the government budget deficit in our model. Discuss all shifts and movements along the three graphs, IS-LM Model, Aggregate Demand Model, & the Money Supply Model.
A new income tax policy has been proposed in the legislature. The policy would require individuals with incomes of $15,000 or less to pay no tax and for those with incomes above $15,000 to a pay a tax of 10% only on the part of their income that exce..
Wwhat is the equivalent annual worth of costs for the website over a total of 6 years at an interest rate of 12% per year.
Why is depreciation added to net income in the Operating Activities category of the statement of cash flows when the indirect method is used? Depreciation provides cash and therefore must be added to net income. Depreciation reduced the book value of..
When excess demand exists for tickets to a major sporting event or concert, profit opportunities exist for scalpers. Explain using supply and demand curves to illustrate this economic principle. Do you agree or disagree that these scalpers are effici..
The stock market is considered a leading economic indicator. Should there be a specific percentage of federal spending that should be reduced such as 25% or 30%? Should there be any changes in tax policy? There are seven U.S. states that do not charg..
As we get started with this discussion, I want us to define leverage- what is leverage? In addition, s financial leverage an area that should be carefully balanced and monitored? Is it possible to have too little or too much leverage?
Describe the economic status of South Korea. What types of economic activities are most prominent there? What factors have led to your region's growth or lack thereof?
A monopoly firm with market power will produce a level of output at which price is greater than marginal cost. Is this statement true? Explain your reasoning, and use a graph (the monopoly model with positive economic profit) to support your answer
Suppose that Charles, an economist from an AM talk radio program, and Dina, an economist from a university in Massachusetts, are arguing over government intervention. The following dialogue shows an excerpt from their debate:
Suppose that in the short run k=100. Moreover, wage of labor is w=5 and price of the product is p=10. What are the optimal units of labor?
In a new, highly automated factory, labor costs are expected to decrease at an annual compound rate of 5 %; material costs are expected to increase at an annual compound rate of 6%; and energy costs are expected to increase at an annual compound rate..
In the context of the real business cycle model, what is the only exogenous variable that can be the main source of business cycle uctuations? Explain why? Are declines in that exogenous variable welfare improving or welfare reducing? Should policy r..
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